Mosaic Co., one of the best-performing stocks in the country over the past couple of years, proved again Friday that there's gold in the fertilizer business.
In a release sprinkled with words such as "extraordinary" and "exceptional," the global producer of phosphate and potash reported third-quarter operating earnings of $647.4 million -- or nearly 20 times last year's $34.2 million.
As a result, Mosaic shares jumped 10 percent Friday, to close at $115.07.
The Plymouth-based company, whose largest shareholder is commodities trader and food processor Cargill Inc., began 2007 at about $20 per share. Surging global demand for corn, wheat, soybean and other agricultural commodities has driven up fertilizer demand and prices much faster than the expenses of fertilizer producers.
"We are delivering record results by effectively executing against the backdrop of an exceptional agricultural environment," said Jim Prokopanko, Mosaic's chief executive.
In a prepared statement, the company said that the environment for its core phosphate and potash businesses "looks extraordinary, despite the recent turbulence in commodity markets." And analysts agreed Friday that there is no end in sight to Mosaic's surging stock price.
"Earnings are growing faster than the stock has been moving," said Edlain Rodriguez of Merrill Lynch in New York.
"We haven't reached a price limit yet, and what we're seeing right now in the market is pretty sustainable for the next several years," Rodriguez said.
